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Growing a business

Building brand loyalty

4 min read

Making sales is critical for any business, but it’s not just hard cash that helps to grow your company, it’s also those little intangibles like brand loyalty.

How can you create that elusive feeling of brand affinity among your customers? We’ll look at some ways of creating customer loyalty right here.

What is brand loyalty?

Brand loyalty means your customers have a personal and possibly emotive connection with your products and services, rather than a more cold, transactional one. Every business strives to increase brand loyalty because it means your customers may return time and again to buy more products, and spread the word about what makes you special.

You don’t have to be a superfan with logos on your wall to have an affinity for a brand. As customers, we may consciously or unconsciously become loyal to certain companies throughout our lifetime.

What is customer loyalty?

Customer loyalty is a close cousin of brand loyalty, and while there is no dictionary definition, customer loyalty is more about spending habits and behaviours rather than a deeper connection with a brand.

Why is customer loyalty important?

Here are three reasons why every business may want to consider implementing a customer loyalty strategy.:

  1. Boost your cash flow. The reality for any business is that happy, loyal customers may be more likely to spend more money and keep your balance sheet healthy.
  2. Save money. Having loyal customers could allow you to reduce your spending on acquisition marketing.
  3. Promote new products. Your repeat visitors are more likely to try new products, which could give you a chance to shake up your inventory and get valuable market research.

Why is brand loyalty important?

An effective brand loyalty strategy is worth its weight in gold. Here are three reasons why:.

  1. Word of mouth. People who like what your business offers are more likely to recommend you to others, which may be cheaper than a paid marketing campaign.
  2. Influencers. Whether they’re paid or unpaid, having the right influencer who feels passionate about your brand can help you reach new customers on social media.
  3. Reputation. Creating brand affinity means customers may look out for your logo, and may even allow you to tweak your pricing strategy and charge higher prices as your brand becomes more reputable.

How brand and customer loyalty overlap

Creating customer loyalty means you’re more likely to build brand loyalty. If a customer has a positive experience in-store, where they can buy well-priced, quality products, and enjoy good customer service, their affinity towards your brand will likely grow over time.

How to attract loyal customers

Running a business involves a lot of trial and error, but if you’re looking for ways to build brand and customer loyalty, why not give some of these ideas a try?

  • Acustomer loyalty programme – you may be able to encourage repeat customers by rewarding their loyalty. Some loyalty programmes offer redeemable points for customers (such as Tyl Rewards), while others can be as simple as a loyalty card with a free coffee on the tenth visit, for example.
  • Membership schemes – By creating a paid members’ scheme, with access to exclusive and premium content and benefits, your customers may feel like they’re a part of an ‘inner circle’ and feel even closer to your brand.
  • Charitable support – Many consumers make values-based decisions, so partnering with a charity or cause can show that you care about the same things your customers do. One successful example of a business-charity partnership is Macmillan Cancer Support’s partnership with Boots. Staff at the pharmacy chain were trained to give advice to people with cancer , helping to instil brand loyalty by showing that Boots take their charity commitments seriously.
  • Think local – Many people love to spend their hard-earned cash at the local café, bar or restaurant, rather than a chain store where the money might not be reinvested locally. So, getting involved in local initiatives, from jumble sales to crowdfunding initiatives, could drive brand loyalty and make you a ‘local hero.
  • Honestyis the best policy – Being open and honest with your customers, whether you’re breaking bad news or justifying your prices, shows that you’re acting with integrity. Honesty can often inspire trust between you and your customers, giving them a strong affinity for your brand.

Further reading for growing your business:


This has been prepared by Tyl by NatWest for informational purposes only and should not be treated as advice or a recommendation. There may be other considerations relevant to you and your business so you should undertake your own independent research.

Tyl by NatWest makes no representation, warranty, undertaking or assurance (express or implied) with respect to the adequacy, accuracy, completeness, or reasonableness of the information provided.

Tyl by NatWest accepts no liability for any direct, indirect, or consequential losses (in contract, tort or otherwise) arising from the use of the information contained herein. However, this shall not restrict, exclude, or limit any duty or liability to any person under any applicable laws or regulations of any jurisdiction which may not be lawfully disclaimed.

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